North Carolina Down Payment Support Programs

Payments Gateway - The North Carolina Housing Finance Agency has two excellent plans for First Time Home Buyers. These programs will be the deposit Assistance System and the Mortgage Credit Certificate.

Also you purchase a property between January 1, 2009 and December 1, 2009 and if you meet the requirements for one of the programs, you could also qualify for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who is a First Time Home Buyer? A First Time Home Buyer is someone who hasn't owned a home in the prior three years. This is the same qualifying definition.

What's a Mortgage Credit Certificate and Who Qualifies?

All home owners can claim an itemized deduction for mortgage interest. An MCC “reduces your tax liability based on a share of the mortgage interest which you pay.

Should you qualify for the MCC, you can claim 20% of the interest you pay as a credit in your federal income taxes on your mortgage. It is possible to save as much as $2,000 on your taxes.

You may manage to join this with the $8,000 tax credit should you qualify for 2009, for the MCC. This might reduce a buyer's tax liability .

Who Qualifies for an MCC?

Who qualifies for an MCC is based on your own income along with the purchase price of the house you are buying. Household income means the “gross income of the mortgagor and every other individual expected to reside in the home who's 18 years old or older.”

The income and house price limits that apply in Durham Orange and Chatham Counties are given below.

MCC Income Limits 1 Man $61,500 2 Men $61,500 3 Persons $70,500 4 Individuals $70,500

MCC Sales Cost Limitations New Home $220,000 Existing Home $210,000

The customer only has to pay and the load would pay around .

This program has more stringent income limitations than the MCC plan outlined above. Like the MCC program, it can be used together with the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The deposit assistance, nevertheless, can not be applied in combination together with the MCC. That is an either or scenario.

The income and house price limits that apply in Orange, Durham and Chatham Counties are listed below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Individuals $45,650 3 Men $51,350 4 Persons $57,050

Down Payment Assistance Sales Price Limits New Home $210,000 Existing Residence $210,000